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Saturday, July 31, 2010

The Pond

NEW YORK - It was a night in early November during the infancy of the Cold War when the anti-communist dissidents were hustled through a garden and across a gully to a vehicle on a dark, deserted road in Budapest. They hid in four large crates for their perilous journey.

Four roadblocks stood between them and freedom.

What Zoltan Pfeiffer, a top political figure opposed to Soviet occupation, his wife and 5-year-old daughter did not know as they were whisked out of Hungary in 1947 was that their driver, James McCargar, was a covert agent for one of America's most secretive espionage agencies, known simply as the Pond.

Created during World War II as a purely U.S. operation free of the perceived taint of European allies, the Pond existed for 13 years and was shrouded in secrecy for more than 50 years. It used sources that ranged from Nazi officials to Stalinists and, at one point, a French serial killer.

It operated under the cover of multinational corporations, including American Express, Chase National Bank and Philips, the Dutch-based electronic giant. One of its top agents was a female American journalist.

Now the world can finally get a deeper look at the long-hidden roots of American espionage as tens of thousands of once-secret documents found in locked safes and filing cabinets in a barn near Culpeper, Va., in 2001 have finally become public after a long security review by the Central Intelligence Agency.

The papers, which the Pond's leader tried to keep secret long after the organization was dissolved, were placed in the National Archives in College Park, Md., in 2008 but only opened to the public in April. Those records plus documents obtained by The Associated Press in the past two years from the FBI, CIA and other agencies under the Freedom of Information Act portray a sophisticated organization obsessed with secrecy that operated a network of 40 chief agents and more than 600 sources in 32 countries. The AP has also interviewed former officials, family members, historians and archivists.

The Pond, designed to be relatively small and operate out of the limelight, appeared to score some definite successes, but rivals questioned its sources and ultimately, it became discredited because its pugnacious leader was too cozy with Sen. Joseph McCarthy and other radical anti-communists.

The documents also highlight issues still relevant today: the rivalry among U.S. intelligence agencies that have grown to number 16, the government's questionable use of off-the-books operations with budgets hidden from congressional oversight, and the reliance on contractors to undertake sensitive national security work.

Created by U.S. military intelligence as a counterweight to the Office of Strategic Services, the forerunner of the CIA, it functioned as a semiautonomous agency for the State Department after World War II and ended its days as a contractor for the CIA with links to J. Edgar Hoover's FBI.

The organization counted among its exploits an attempt to negotiate the surrender of Germany with Hermann Goering, one of Adolf Hitler's top military leaders, more than six months before the war ended; an effort to enlist mobster Charles "Lucky" Luciano in a plot to assassinate Italian dictator Benito Mussolini; identifying the location of the German heavy water plants doing atomic research in Norway; and providing advance information on Russia's first atomic bomb explosion.

There were other tangible successes, such as planting a high-level mole in the Soviet secret police and, in a major operation code-named "Empire State," the Pond paid a group of dissidents behind the Iron Curtain with CIA funds to obtain cryptographic systems to break coded messages from Moscow.

But it was Pfeiffer's successful escape that was among the most high-profile operations, garnering headlines, although the Pond's role was kept secret for years.